A BILL

TO AMEND SECTION 12-28-310(A) OF THE 1976 CODE, RELATING TO THE USER FEE ON GASOLINE AND DIESEL FUEL, TO PROVIDE THAT THE SIXTEEN CENT PER GALLON USER FEE SHALL BE INCREASED BY TWO CENTS EACH YEAR UNTIL THE USER FEE IS EQUAL TO THIRTY-SIX CENTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-28-310(A) of the 1976 Code is amended to read:

"Section 12-28-310. (A)(1) Subject to the exemptions provided in this chapter, a user fee of sixteen cents a gallon is imposed on:

(1)(a) all gasoline, gasohol, or blended fuels containing gasoline that are used or consumed for any purpose in this State; and

(2)(b) all diesel fuel, substitute fuels, or alternative fuels, or blended fuels containing diesel fuel that are used or consumed in this State in producing or generating power for propelling motor vehicles.

(2)Until July 1, 2014, the user fee shall be equal to sixteen cents per gallon. The user fee shall be annually increased by two cents beginning on July 1, 2014, and each year on July first until July 1, 2023, at which time the user fee shall be equal to thirty-six cents per gallon. The amounts collected above sixteen cents must be credited directly to the State Highway Fund."